Snowflake Inc. (SNOW)
Chart Events
Performance Outlook
| Previous Close | 249.00 |
| Open | 250.64 |
| Bid | 239.10 x 1000 |
| Ask | 239.73 x 1100 |
| Day's Range | 217.82 - 250.73 |
| 52 Week Range | 208.55 - 429.00 |
| Volume | 20,149,056 |
| Avg. Volume | 4,998,101 |
| Market Cap | 67.868B |
| Beta (5Y Monthly) | N/A |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | -3.81 |
| Earnings Date | Mar 03, 2021 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | 305.04 |
Fair Value
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- Analyst Report: Snowflake Inc.
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Snowflake’s Loss Doubles In 4Q; Shares Drop 3.8%
Shares of Snowflake Inc fell 3.8% in after-hours trading on March 4 as the company’s fourth-quarter loss widened. The cloud-based data company reported a net loss of $198.9 million in 4Q FY21, which more than doubled from the $83.3 million loss incurred during the same quarter last year. Snowflake (SNOW) reported a loss per share of $0.7 in 4Q versus a loss of $1.67 per share in the year-ago period. Analysts were expecting a loss of $0.43 per share. Meanwhile, the company posted revenues of $190.5 million, up by 117% year-on-year that topped analysts’ estimates of $178.5 million. Snowflake’s CEO Frank Slootman said, “We finished our fiscal year with strong performance and reported triple-digit product revenue growth. Remaining performance obligations showed a robust increase year-on-year, reflecting strength in sales across the board. Coupled with this rapid growth, we saw improving operating efficiency while expanding our footprint globally.” The exponential growth in SNOW’s revenues in 4Q was mainly driven by a 116% year-on-year growth in product revenues to $178.3 million. As of Jan. 31, the company had a net revenue retention rate of 168%. Currently, SNOW has 77 customers with trailing 12-month product revenue exceeding $1 million and 4,139 total customers. (See Snowflake stock analysis on TipRanks) Snowflake also made two key announcements during the earnings call. The company stated that all shareholders of SNOW’s Class B stock have converted their shares to Class A stock, thus eliminating the dual structure of its common stock effective March 1. In addition, SNOW announced that after its initial public offering (IPO) in September last year, the IPO lockup restrictions will expire on March 5 and as a result any shares that were not purchased in secondary transactions or in private placement in relation to the IPO “will no longer be subject to a lockup agreement”. Looking ahead to the first quarter of FY22, SNOW expects product revenues to generate between $195 million to $200 million, translating into growth of between 92% to 96% year-on-year. For FY22, the company forecasted revenues to land between $1,000 million to $1,020 million. Following the earnings results, Deutsche Bank analyst Patrick Colville raised the price target to $300 from $270 and upgraded the stock from a Hold to a Buy. Colville said, “We see Snowflake’s growth as suggestive of a very large TAM [total addressable market] and a clear product market fit. RPO [remaining performance obligation] rose 213% in 4Q, and supporting metrics such as logo adds and customers with >$1m product revenue all trended up and to the right, suggestive of continued momentum. We remain bullish on the long-term outlook of Snowflake given positive feedback in our industry checks.” Colville added, “A further sweetener is that Snowflake announced that it has eliminated its dual class share structure (effective as of March 1st). We see this is a positive as it removes corporate governance concerns, and allows for potential future inclusion in large indices such as the S&P 500.” The rest of the Street is cautiously optimistic on the stock with a Moderate Buy consensus rating based on 4 Buys and 9 Holds. The average analyst price target of $296 implies almost 19% upside potential to current levels. Related News: Marvell Drops 6% After 1Q Outlook; Street Says Buy Splunk’s 4Q Results Top Wall Street Estimates; Shares Jump 5.1% Zynga Snaps Up Echtra Games; Street Says Buy More recent articles from Smarter Analyst: Costco’s 2Q Sales Soar 15% On E-Commerce Boom; Street Is Bullish Gap Rises 4% On 4Q Profit Beat NXP Semiconductors Ramps Up Dividend By 50%, Boosts Share Buyback Plan Sprouts Farmers Gains 5% On $300M Shares Buyback
- Benzinga
4 Snowflake Analyst On Q4 Results: 'A New Enterprise Data Cloud Platform Of Choice'
Cloud-based data warehousing company Snowflake Inc. (NASDAQ: SNOW) reported fourth-quarter revenue Wednesday that more than doubled from a year ago and a loss that narrowed from the year-ago quarter. The full-year revenue guidance was about in-line with estimates. The Snowflake Analysts: Rosenblatt Securities analyst Blair Abernethy reiterated a Neutral rating on Snowflake with a $285 price target. Piper Sandler analyst Brent Bracelin maintained an Overweight rating and $312 price target. Credit Suisse analyst Brad Zelnick maintained a Neutral rating and lowered the price target from $310 to $275. Deutsche Bank Securities analyst Patrick Colville upgraded Snowflake shares from Hold to Buy and raised the price target from $270 to $300. Rosenblatt On Snowflake's Business Resilience: Snowflake's revenues and remaining performance obligations exceeded Rosenblatt's expectations, Abernethy said in a note. Other notable metrics include a 168% net retention rate and 88% year-over-year increase in large customers, the analyst said. COVID-19 has had a neutral impact, he said. Many enterprises are moving ahead with digital transformation plans several years earlier than they had planned before COVID-19, Abernethy said. Due to scale, product mix, and improved discipline around sales contracting, gross margins are tracking ahead of Rosenblatt's expectations, the analyst said. "Despite the Covid crisis' significant impact, we see Snowflake's business model as having continued resilience, and now expect it to deliver 90% RPO growth in FY22e (ending January 31, 2022) and 46% in FY23e." Related Link: Let It SNOW: Wall Street Cheers Snowflake's 'Impressive' Results, Confidence In Long-Term Growth View more earnings on SNOW Why Snowflake Is A Cloud Platform of Choice: Snowflake finished fiscal year 2021 on a high note with a $405 million quarter-over-quarter jump in RPO that rose by over 200% year-over-year to $1.33 billion, Piper Sandler analyst Bracelin said in a note. Robust enterprise consumption drove triple-digit product revenue growth, and better-than-expected collections contributed to positive free cash flow of $7 million, the analyst said. "The scale of new contracts and renewals during Q4 reinforces our bullish view on SNOW as a new enterprise data cloud platform of choice," he said. Robust RPO momentum increases Bracelin's confidence in the growth trajectory beyond fiscal year 2022, given the multi-quarter lag between contract signings and consumption revenue triggers, he said. Credit Suisse Applauds Snowflake: Snowflake continues to execute well, with data cloud becoming an increasingly strategic differentiator, enabling secure and governed data sharing, Zelnick said. Consumption attributable to data from marketplace providers and a tenfold year-over-year increase in data marketplace listings signal a widening competitive moat, rising barriers to exit and broader platform adoption, the analyst said. Better-than-expected net retentions also reflect customer satisfaction and strong uptake, he said. The in-line product revenue guidance for fiscal-year 2022, the analyst said, reflects prudent conservatism rather than any underlying weakness. "We believe Snowflake will play an increasingly important role across the entire data value chain, but remain Neutral due to its rich valuation at 45.6x EV/CY22 revenues," according to Credit Suisse. Deutsche Bank On Snowflake: The fourth-quarter numbers support Deutsche Bank's thesis that Snowflake is in the sweet spot for two key secular trends of this decade: data-driven decision-making and cloud adoption, Colville said. The analyst said valuation and lockup worries have subsided. SNOW Price Action: Snowflake shares gained 0.8% in Thursday's session, closing at $249. Related Link: Paysafe Taps Snowflake In Cloud Tech Partnership Latest Ratings for SNOW DateFirmActionFromTo Mar 2021Credit SuisseMaintainsNeutral Mar 2021BarclaysMaintainsEqual-Weight Mar 2021CitigroupMaintainsNeutral View More Analyst Ratings for SNOW View the Latest Analyst Ratings See more from BenzingaClick here for options trades from BenzingaIPhone Demand Drives Q1 Growth For Apple Supplier FoxconnGM-LG Chem Joint Venture Plans Second Stateside EV Battery Manufacturing Unit© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
